For the Quarter Ending June 2025
North America
• Polylactic Acid (PLA) Price Index across the U.S. stood at USD 2890/MT, FOB USGC in Q2 2025, up by 3% over Q1, courtesy of strong demand and shrinking supply in the face of logistical and cost pressures.
• PLA Price was strong as the percentage of packaging, 3D printing, textile, and agrisector usage supported downstream strength, consistent with ESG objectives and state plastic regulation initiatives (e.g., California).
• PLA Demand Forecast remained strong with increasing uptake in compostable coffee capsules, biodegradable e-retail packaging, and eco-friendly textile filaments, especially in the wake of increased environmental awareness.
• Despite mild raw material stability (corn starch, sugarcane), the PLA Production Cost Trend remained upward due to energy costs and increasing freight rates, especially on transpacific lanes post-tariff implementation.
• Domestic producers like NatureWorks operated consistently, but capacity constraints and limited plant expansions kept supply tight, especially during mid-Q2 maintenance phases.
• Port congestion, rising container charges, and strategic stockpiling by buyers ahead of potential tariff escalations reinforced price stability and gradual increases across the quarter.
• PLA Price Forecast for July 2025 signals further price increase due to upcoming demand surges in food packaging and agriculture, tariff-driven import cost escalations, and continued supply limitations from delayed ramp-up of new U.S.-based production lines.
Europe
• Polylactic Acid (PLA) Price Index in Germany averaged USD 2720/MT, CFR Hamburg during Q2 2025, reflecting a 7% rise from Q1, driven by firm demand and logistical bottlenecks.
• PLA Price gained steadily through Q2, supported by rising consumption in sustainable packaging, 3D printing, and textiles amid EU regulatory compliance under the Packaging and Packaging Waste Regulation (PPWR).
• PLA Demand Outlook remained strong due to growing interest in biodegradable alternatives and increased adoption in food service, automotive interiors, and agriculture.
• Port congestion at Hamburg and Bremerhaven, compounded by rail access closures and summer truck bans, created supply-side delays that contributed to upward pressure on the PLA Price Index.
• Despite stable raw material prices like lactic acid and corn starch, the PLA Production Cost Trend remained elevated due to energy-intensive processing and inland freight surcharges.
• Producers such as TotalEnergies Corbion and local compounders ensured steady output and import coordination, maintaining market balance despite intermittent supply strain.
• Proactive procurement strategies by converters ahead of July’s infrastructure-related disruptions and tighter port access have reinforced bullish momentum.
• PLA Price Forecast for July 2025 indicates further increase due to anticipated rail closures at Hamburg Waltershof, low inventory buffers, and firm offtake from converters, especially before the August holiday slowdown.
APAC
• Polylactic Acid (PLA) Price Index in Thailand averaged USD 2105/MT, FOB Laem Chabang for Q2 2025, showing a 9% decline from Q1, due to oversupply and subdued regional demand.
• PLA Price remained under downward pressure as expanded production capacities from NatureWorks and TotalEnergies Corbion led to increased regional availability.
• PLA Production Cost Trend declined with Thailand’s record sugarcane harvest and stable cassava prices, reducing input costs and compressing producer margins.
• PLA Demand Outlook remained steady in packaging and agriculture, but muted activity in 3D printing and textiles created temporary demand imbalances.
• Inventories rose as converters in Southeast Asia engaged in cautious procurement amid excess supply, dampening buying interest and pushing prices lower.
• Export orders to China, South Korea, and the U.S. weakened due to global tariff pressures and soft overseas demand, further weighing on local pricing.
• PLA Price Forecast for July 2025 indicates a potential price increase, driven by inventory correction, stronger seasonal demand from agriculture and food packaging, and expected delays in new capacity ramp-ups.
• Thailand’s strategic position as a bioplastics hub and strengthening policy support for sustainable materials is expected to gradually lift PLA price sentiment moving into Q3.
For the Quarter Ending March 2025
North America
The Polylactic Acid (PLA) market in North America exhibited a mixed trend during Q1 2025, influenced by varying demand levels, evolving trade dynamics, and supply adjustments. In early January, prices remained stable due to balanced supply-demand conditions post-holiday, with adequate production and steady raw material costs supporting the market.
However, by mid-January, prices experienced a slight dip owing to competitive pressures and seasonal slowdown, though demand from sectors like packaging and agriculture remained resilient. February saw another dip in prices, driven by oversupply, economic uncertainties, and increasing competition from traditional plastics and alternative bioplastics. Rising import volumes and logistical inefficiencies, particularly at East Coast ports, further pressured prices.
Nonetheless, the market rebounded in March with a 3.7% increase amid rising demand for compostable packaging and policy shifts supporting sustainability. New innovations like Ingeo Extend also contributed to industry optimism. Despite trade uncertainties and tariff concerns, the market remained steady by the end of the quarter. Thus, the price of PLA closed at USD 2800/MT, FOB USGC, in March 2025.
Despite this, prices reflected 2% decrease as compared to the previous quarter.
Europe
Polylactic Acid (PLA) prices in Europe showed an inclining trend throughout Q1 2025, supported by strong demand and growing sustainability regulations. The quarter began with relatively stable prices, as consistent demand from packaging, 3D printing, and textiles helped maintain a balanced market. Regulatory developments under the EU Packaging and Packaging Waste Regulation (PPWR) and the inclusion of PLA-based mulch films in the Fertilising Products Regulation supported its use across agriculture and food packaging sectors. As the quarter progressed, production and logistics costs started rising, driven by higher energy prices and inflation across the Eurozone.
In March, severe congestion at the Rotterdam port delayed shipments and created supply bottlenecks, pushing prices higher. Feedstock costs, particularly for lactic acid and lactide, also rose, compounding the upward price pressure. Meanwhile, the EU’s push for a circular bioeconomy and initiatives to reduce microplastic pollution further strengthened long-term demand for PLA. Despite some market resistance to volatility, the outlook remained bullish. By the end of March, PLA prices in Europe reached USD 2490/MT, FOB Amsterdam.
Despite this, prices reflected no change as compared to the previous quarter.
APAC
In Q1 2025, the Polylactic Acid (PLA) market in the APAC region, particularly in China, exhibited a mixed price trend. At the start of the quarter, prices rose due to strong post-holiday demand recovery, inventory replenishment, and tight supply driven by maintenance shutdowns and raw material cost pressures. By mid-January, prices saw a slight dip as downstream activity moderated and new production capacity entered the market. February brought renewed price increases, supported by strong demand across sustainable packaging, agriculture, and 3D printing, coupled with ongoing supply constraints and rising input costs.
However, March witnessed a steady decline in prices, influenced by weakening demand from sectors like packaging and consumer goods, increased domestic production, and oversupply concerns. Logistical improvements and competition from other polymers added further pressure. While long-term prospects for PLA remained positive due to sustainability trends and government support, short-term price fluctuations were shaped by economic conditions and market adjustments. By the end of March 2025, PLA prices in China had declined to USD 2300/MT, Spot Ex-Qingdao, reflecting the cumulative impact of softer demand and growing supply. Despite this, prices reflected a 8% decrease compared to the previous quarter.
For the Quarter Ending December 2024
North America
The price trend of Polylactic Acid (PLA) in the U.S. for Q4 2024 showed a moderate decline overall, largely driven by a combination of supply-side and demand-side factors. PLA prices experienced a slight dip during the quarter, with fluctuations resulting from seasonal changes and market dynamics.
Demand remained steady throughout the quarter, primarily driven by the growing sustainable packaging market. However, a seasonal slowdown towards the end of the year, particularly in packaging, textiles, and 3D printing, led to reduced consumption. This decline in demand, alongside an economic slowdown, contributed to weaker price pressure. Additionally, the introduction of new production capacities and improvements in plant efficiencies led to a temporary surplus in the market, further driving price reductions.
On the supply side, the U.S. maintained steady production levels, supported by stable availability of key raw materials like corn starch. Despite some logistical disruptions, including port congestion and labor disputes, these factors had minimal impact on the price trend. Furthermore, the price of lactic acid, a key raw material, decreased slightly, easing overall production costs.
In conclusion, the Q4 2024 PLA price trend in the U.S. saw a gradual decline, driven by a balanced supply-demand environment, improved production capabilities, and a reduction in raw material prices. However, compared to the previous quarter, prices increased by 0.7%, signaling a slight recovery. The market's ongoing focus on sustainability and eco-friendly packaging solutions continued to support steady demand, although slightly reduced. This combination of factors contributed to a stable yet slightly fluctuating pricing environment for PLA during the quarter.
Europe
In Q4 2024, the PLA price trend in the Europe region, particularly in Germany, exhibited a mix of stability and gradual decline, influenced by various market dynamics and regulatory changes. The first half of the quarter saw relatively stable prices, supported by steady demand from the sustainable packaging industry and other sectors like textiles and agriculture. Efficient inventory management and consistent domestic production helped balance supply and demand, contributing to price stability. However, challenges such as shipping delays and congestion at European ports, particularly due to the holiday season, created short-term disruptions.
In the latter half of Q4 2024, PLA prices began to decline due to weaker downstream demand and seasonal slowdowns, particularly in the packaging and textiles industries. Increased production capacity and favorable supply conditions led to an oversupply in the market, putting downward pressure on prices. While the EU's new Packaging and Packaging Waste Regulation (PPWR), which seeks to harmonize waste management and promote sustainable packaging, is expected to drive long-term demand for PLA, its short-term impact has been overshadowed by current supply-demand imbalances. Despite this, prices reflected a 2% increase compared to the previous quarter. By the end of December 2024, PLA prices closed at USD 2480/MT, CFR Hamburg, marking a significant decline from earlier in the quarter.
APAC
In Q4 2024, the PLA market in Thailand experienced a notable decline in prices, driven by several factors impacting both supply and demand. Early in the quarter, PLA prices remained stable, supported by consistent domestic production and strong demand from the sustainable packaging sector. However, as the quarter progressed, a combination of seasonal slowdowns in demand from key industries such as packaging, textiles, and agriculture contributed to a decrease in PLA consumption. Additionally, increased production capacity and inventory adjustments resulted in a market surplus, further exerting downward pressure on prices.
The decline in lactic acid prices, a key raw material for PLA production, played a significant role in reducing production costs and amplifying the downward price trend. However, compared to the previous quarter, lactic acid prices saw an increase of 15%. By the end of December 2024, PLA prices had fallen to USD 2390/MT, FOB Laem Chabang, down from a high earlier in the quarter. This decline in prices was further exacerbated by regional shipping disruptions and economic slowdowns, particularly in China, which led to reduced global demand. Despite these challenges, technological advancements in PLA production helped to moderate the impact on prices, ensuring a degree of market stability amidst the prevailing supply-demand imbalances.
For the Quarter Ending September 2024
North America
In Q3 2024, the Polylactic Acid (PLA) market in North America maintained stable prices, with the USA experiencing the most significant fluctuations. However, these price changes remained narrow, ranging from 0.5% to 1%. Several factors influenced market prices, including consistent demand from industries such as packaging and 3D printing, which helped stabilize prices despite global shipping disruptions and supply chain challenges.
Stable production levels and efficient inventory management in the USA also contributed to price stability, along with balanced import volumes from key markets. Seasonal fluctuations, particularly increased demand for PLA containers in food packaging during the summer months, played a role in maintaining market equilibrium.
Demand from the sustainable packaging sector remained robust, supported by seasonal inventory replenishment from downstream industries like textiles and agriculture. Additionally, stable lactic acid prices, a primary raw material for PLA, helped maintain overall production costs. Although concerns over a potential International Longshoremen's Association strike created market apprehension, proactive inventory management and a cautious approach from shippers mitigated significant disruptions, further contributing to the overall pricing stability throughout the quarter.
Compared to the previous quarter in 2024, prices increased by 2%, indicating a slight recovery. Throughout the quarter, prices remained steady, with no significant changes between the first and second halves. The quarter-ending price for Polylactic Acid contracts in Louisiana was recorded at USD 2720/MT, reflecting a stable pricing environment.
APAC
In Q3 2024, the Polylactic Acid (PLA) market in Thailand experienced a mixed pricing trend, influenced by various market dynamics. In the first half of the quarter, PLA prices rose significantly due to a surge in demand from downstream industries such as packaging, 3D printing, and agriculture, largely driven by new government policies promoting bioplastics. Supply constraints arose from production issues and depleted inventories, resulting in increased reliance on spot purchases. Additionally, rising lactic acid prices, the primary raw material for PLA production further escalated production costs. However, in the second half of Q3 2024, PLA prices consistently declined, primarily due to a seasonal slowdown in demand from key sectors, particularly sustainable packaging and textiles. Increased domestic production, facilitated by enhanced plant efficiencies and new production capacities, created a market surplus that exerted downward pressure on prices. Inventory adjustments by manufacturers also contributed to the oversupply. Furthermore, a decrease in lactic acid prices, driven by softened demand and reduced production costs, allowed manufacturers to lower their selling prices. Ongoing market uncertainties, including the Red Sea crisis and significant congestion at key Asian ports, deterred foreign buyers and exacerbated supply chain issues, impacting market sentiment and pricing dynamics for Polylactic Acid. Compared to the previous quarter, prices increased by 8%, indicating a rise in overall demand. The quarter-ending price for Polylactic Acid in Thailand was recorded at USD 2830/MT, FOB Laem Chabang, reflecting the mixed pricing environment.
Europe
In Q3 2024, the Polylactic Acid market in Europe witnessed a notable increase in prices, driven by a combination of factors influencing market dynamics. Steady demand from key sectors like sustainable packaging, textiles, and 3D printing played a critical role in maintaining price stability. Supply-side factors, including consistent domestic production levels and effective inventory management, further supported the market. In Q3 2024, PLA prices in the Netherlands experienced a notable increase, primarily driven by strong demand from the sustainable packaging industry and rising lactic acid costs due to energy and shipping pressures. Supply-side challenges, including technical difficulties at production facilities, further contributed to upward pricing pressure. Despite these challenges, consistent domestic production and effective inventory management helped balance supply and demand. The growing emphasis on sustainable materials, alongside innovations like Bioworks' PlaX™ fabric, reinforced market stability and interest. However, the overall price trend in the Netherlands stood out the most, experiencing significant price changes compared to other European regions. The correlation between price changes and seasonality was apparent, with prices reflecting a 2% increase from the previous quarter. The market showed resilience with a positive 2% change from the first to the second half of the quarter. This upward trajectory culminated in the latest quarter-ending price of USD 2403/MT of Polylactic Acid FOB Amsterdam, underscoring a positive pricing environment in the European region.
FAQs
Why did PLA prices rise in North America during Q2 2025?
Prices rose due to resilient demand from sustainable sectors, tight supply from limited capacity, and rising energy and freight costs.
What caused the PLA price increase in Europe in Q2 2025?
Strong regulatory-driven demand and persistent port and inland logistics issues pushed the PLA Price Index upward.
Why did PLA prices decline in the Asia-Pacific region during Q2 2025?
Increased regional supply from new capacities and weak export demand led to a 9% drop in the PLA Price Index.
Will PLA prices increase in July 2025 across all regions?
Yes, July is expected to see higher PLA prices due to seasonal packaging demand, bottlenecks supply, and preemptive stockpiling.
